Solving the Northwest timber-supply crisis

Not Just West of Cascades
1st. Not ESA Question-Old Growth
Snail Darter-Tellico Dam
Furbish Louwnswart-Dickey Lincoln
Spotted Owls are not endangered
Salmon/owls are two diff. issues
Species-Environ.-Important
Industry-42,000 jobs at stake. |5%<-----90%------>5%|
Is there a politically acceptable solution?
Yes! Not perfect but acceptable to 90%
1992 Harvest was up to 13.7 Billion
1992 Sales .4 Billion
1911 Sales 1.2 Billion
Production decrease 1998-1993
33% of plywood
22% of lumber
If continued at Fed=3.4 billion
42,000 jobs Lumber, plywood, paper
SOLUTION:
President states-not owls, not ESA But, Old growth
Recognize importance of industry
Recognize importance of Environment
Can have both.
Industry will demand 8-9 billion from federal lands--6 will do.
President:
Cut tax incentive of forein sales corp. -$20 million/yr No more even age silverculter Public perception (clear cuts)
Right of access (Checkerboard ownership)
Ban all exports -logs and chips
2.2 bill. logs
2.7 million units of chips
Recognize private property rights as you did in Eugene
But--we now use condemnation for the public good-- highways, etc.
But you wouldn't condemn You would ban exports
And sell the fiber domestically
Difference in price in compensable Tobacco, cotton, rice.
Def of Terms: "Old Growth"--"Exhibiting O.G. Characteristics"
Industry--8.2-9 off feds
Save some old growth 8-9 million acres. 6 billion BD FT. tied up.
Pick a number-- 1-2 million acres into wilderness
The balance put into the base with certainty
Industry continues, owls survive--90% of people happy
Canada Plus countervailing duty elim.
Gives them access helps our supply
decreases price
Doesn't cost anything
Solving the Northwest
Timber-Supply Crisis
by Donald Smith
In attempting to end the timber-supply crisis that has been precipitated
by efforts to protect the northern spotted owl, it is essential to
understand that the forest products industry in the Northwest depends on
wood fiber from public and private forests - not only from the "owl
forests• in western Washington, western Oregon and northern California -
but from forests in eastern washington eastern Oregon and parts of Idaho
and Montana as well. This Northwest •wood basket• supplies logs to
regional producers of products, who in turn supply wood residues, such
as chips, to regional producers of pulp and paper (see attached table).
For the forest products industry in the Northwest to approximate even
today's depressed levels of production and employment (first column) on
a sustainable basis (far right column), federal forests in these five
states must be the source of 8.2 billion board feet of timber annually.
If federal forests in the Northwest wood basket fail to be the source of
8.2 billion board feet of timber on an ongoing basis, and the harvest on
private forests returns to a sustainable level and from its present
price-induced high (first column), then production of wood products and
pulp and paper will have to be curtailed to balance the region's
manufacturing capacity with its diminished supply of wood fiber.
Production declines of up to 49 percent for lumber, 23 percent for
plywood, and 31 percent for pulp and paper can be expected.
The only alternative to shutting down the production of wood products
and pulp and paper to compensate for the shortfall in federal timber
would be to accelerate harvest of the region's private forests.
Either action is undesirable. In the first instance, up to 42,000
people now working in wood products plants and pulp and paper mills
would lose their jobs, entire communities would be devastated, and high
prices for lumber and plywood would slow the construction of affordable
housing and restrain the nation's economic recovery.
In the second instance, it would be simply a matter of time before
private forest harvests could not be sustained and production of wood
products and pulp and paper plummets to compensate for the shortfall of
not only federal timber but private timber as well. The economic and
environmental impact would be catastrophic.
The only desirable action - economically and environmentally - is for
the wood supply from public and private forests in Oregon, Washington,
northern California, Idaho, and western Montana to include 8.2 billion
board feet of federal timber each year.
..
PNW Timber Supply Analysis
NORTHWEST WOOD BASKET
OREGON, WASHINGTON, IDAHO, WESTERN MONTANA, NORTHERN CALIFORNIA
(Chip Supply Area)
/7t.
ISoweea for logs (BBF log_..- net merch.IIOitwood)
CURRENT
SITUATION
( baSed on 1992
federal cut of 3.4 Bl
All Federal a. z... 3.4
S1ale and Other Public 0.7
Total Public 4.1
Private (Including nonlndul1rlal) ~- ~ 11.7
TOTAL Domestic Harvest 15.8
Log lmpons 0.04
Log Exports ~. 1 (2.2)
Total Logs Consumed In Pllclflc Nort11•est /'f:j 13.7
~Lumber Production (BBF) 1 1. 1 16.7
Plywood Production (BSF) 1. 7 8.8
ISowces for chips (MBDU'S)
Residual Softwood Chips (from Lumber & Plywood) 1 0.0
Sawdust & Hardwood Chips (from Lumber & Plywood) 1.3
Whole Log Chips and Other Wood Fiber 3.7
Federal Cu1
ol3.4 BBF
AND
Sustainable Pvt.
3.4
0.7
4.1
8.8 •
11.0
0.04
(2.2)
8.8
8.5
5.3
5.3
2.2
4.2
kC hip Imports 0.8 Chip Exports Q. e ~ 12.n ~ ,.
olaf Wood Fiber A,.._,.e tor PNW Pulpn>llper 13.1 - .
0.8
'"'7l ~
.. .a
-
Fiber Consumed bY PNW 13.1 -14.-2
0.0
Federal Cut
Required
tor jobs
8.2 BBF
3126193
DFS
8.2 &:·
0.7
8.9
6.9 •
15.8
0.04
(2.2)
13.6
16.6
6.9
9.7
2.2
4.2
0.8
!2.7l *" 14.2
14.2
IShortfall of Wood Fiber tor PNW Pulp/Paper ®SH 0.0 11itT~ALt_
Direct jobs lost at 8750 per billion board feel log scale 41,871 ......_.
• The orivat• form harv .. t
IN'1"~
1" '\, p. ...u>
:: ~.o.
I "SA f'A '~
3/28/93 TMBERI.AND REsaJACES
..;l, .:Z. 5" E "1- ""~ T
-1.7- ~- . .a -d....f.,... Lf·'f
<1AR-18-·1993 12: 05 TO CHf\IS P. 02
·-·-{a..!( C/> vC.0"> ,'"J., ,\ ;) '
FROM
1.
p --L-t..:-{ ._..er - I '-1! <<./('!-._;,
What were the annual harvest levels on public and private lands in Washington
and Oregon from 1980 to 1992?
Washington
(in million board feet · mmbf)
Privat!l State Federal .Th.W
1980 2,935 744 1,468 5,719
1981 3,266 468 1,156 4,890
1982 3,740 439 900 5,079
1983 4.025 548 1,515 6,088
1984 3,545 794 1,462 5,801
1985 3,561 1,013 1,389 5,963
1986 3,988 1,064 1,503 6,555
1987 4,365 969 1,701 7,035
1988 4,405 826 1,814 7,045
1989 4,582 841 1,427 6,850
1990 4,146 657 1,046 5,849
1991 3,649 535 919 5,103
1992* 3,800 476 624 4,900
* Estimate from W A Department of Natural Resources
Sources: WA Department of Natural Resources; Weyerhaeuser
1 'l lf
Oregon
(mmbf)
Private State Federal I2.W
1980 3,134 205 3,301 6,639
1981 2,702 224 2,753 5,695
1982 3,440 192 2,126 5,758
1983 3,373 288 3,803 7,464
1984 3.078 287 4,185 7,550
1985 3,332 302 4,492 8,127
1986 3,494 253 4,996 8,743
1987 3,281 251 4,683 8,215
1988 3,259 309 5,047 8,615
1989 3,455 243 4,457 8,185
1990 3,229 174 2,816 6,219
1991 3,311 90 2,641 6,080
1992** 5,500
** Estimate from U.S. Forest Service; no breakdown on ownership available
Sources: Oregon State Forestry Department; Weyerhaeuser; and USFS
;) s i,o s. R 'e ~~Ju: ~
- .. ') ' <./ ~) 4 l ' ,.
... I \
i
MAR-18-1993 12:05 FROM
Governor Andrus Briefing
March 18, 1993
Page 2
TO CHRIS
2. Wh2t were the levels of logs exports from public 2nd private lands in
Washington and Oregon from 1980 to 1992?
Washington
(mmbf)
Private• ~· Total
1980 1,899 418 2,317
1981 1,756
1982 1,985 245 2,230
1983 2,317
1984 1,921 449 2,370
1985 2,533
1986 1,654 622 2,276
1987 2,700
1988 2,507 477 2,984
1989 2,742
1990 2,043 446 2,489
1991 2,198
1992 1,969
* Estimates based on DNR biennial surveys
Sources: WA Department of Natural Resources; Jones Washington
Stevedoring Services; and Northwest Economic Associates
P.03
t'IAR-18-1993 12 : 06 FROM
Governor Andrus Briefing
March 18, 1993
Page 3
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
Private
Oregon
(mmbf)
Total
314
280
336
273
351
470
425
417
629
479
419
365
252
TO CHRIS
Sources: Jones Stevedoring Services; Northwest Economic Associates
P.04
There is no record that distinguishes private and public log exports from Oregon.
Prior to the January 1991 ban on exports from state lands, approximately 100 mmbf
of public timber was exported annually.
In addition to the ban, two other factors have contributed to the decline in exportS
since 1990. First, the substitution rule, which forced companies to choose to either
purchase federal timber or export private logs. Many, including Weyerhaeuser, the
largest exporter at Coos Bay, chose federal timber and halted log exportS. Second, a
steady decline in the supply of federal timber has increased domestic demand for
private logs.
i1AR-18-1993 12: 06 FROM TO CHRIS P.0S
Governor Andrus Briefing
March 18, 1993
Page 4
3. How much timber does the industry believe is tied up by environmental
lawsuits and court injunctions?
The Northwest Forestry Association (NFA) estimates that over 5 billion board
feet (bb£) of Forest Service timber and 1 bbf of BLM timber is tied up by
either court injunctions or the administrative appeals process. Injunctions
account for the delay on 99% of the timber.
4. How muc:h old growth exists in Washington and Oregon?
According to the Northwest Forestry Association, there are 8.2 million acres
of old growth in Washington and Oregon. Of that, 4.7 million acres are
permanently set-aside as parks, wilderness or other designated areas.
~AR-18-1993 12=06 FROM TO CHRIS P.06
•
Export Volumes for washington and Oregon Porte (mbf Scribner)
1987 1988 1aae 1990 11191 1992
'Anacortu 26,760 18,265 34,076 61,967 83,837 33,647.
Bellingham 0 0 0 6,855 4,137 s,06S 1
Everett 412,331 418,379 328,045 344.518 280,472 289,7391
Grays Harbor 786,-"8 794,480 888,772 632,271 488,801 463,421
Olympia 175,488 257,790 172,09! 143,379 125.398 83,818,
Port Angeles 287,620 313,449 331,248 258,328 163,188 148,8151
Tacoma 388,857 484,375 459,967 488,064 421,350 3&e,980 I
Longview 684,211 716,124 72!,311 8515,842 849,238 s84,:ze, 1
VanCOI.Iver 0 2,040 0 0 2,SOO 520!
i' Wethington 1,tf8,117 i Tot.l 2,700,183 2,984,883 2,742,114 2,489,222 2,196,717
Astoria 72,482 124,562 137,1189 114,140 93,600 82,018
Coos Bay 211,433 304,189 234,814 233,296 166,794 112,320
NewpOrt 38,448 u,aes 41,315 31,219 43,362 24,571
Portland 94,585 110,371 84,g&1 40,192 81,858 54,090
Oregon Total 417,146 628,170 478,811 418,847 385,414 252,69
·---···
Source:
Jones Washington Stevedoting Company
NorthWest EconomiC Associii1H Briefing Book Input 12-Jan-93
TOTAL P.06
NORTHWEST WOOD BASKET:
OREGON, WASHINGTON, IDAHO, WESTERN MONTANA, NORTHERN CALIFORNIA
SOURCES FOR LOGS IBBF Log Scale)
All Federal
State and Other Public
Total Public
Private (including nonindustrial)
Total Domestic Harvest
Log Imports
Log Exports
Total Logs Consumed in Pacific Northwest
Lumber Production (BBF)
Plywood Production (BSFI
Normal Situation
(based on 1985 federal
harvest of 8.2 BBFI
8.2
1.6
9.8
7.5
17.3
0.05
(3.1)
14.3
17.1
9.7
SOURCES FOR CHIPS: Residuals From Lumber and Plywood IMBDUs)
Softwood Chips 9.8
1.3
3.4
Hardwood Chips and Sawdust
Whole Log Chips and Other Wood Fiber
Chip Imports /. ~~~ 0.6
Chip Exports ~~ --..y (1.81
Total Wood Fiber Available for Pacific Northwest Pulp/Paper
Wood Fiber Consumed by Pacific Northwest Pulp/Paper
Shortfall of Wood Fiber for Pacific Northwest Pulp/Paper
Direct Jobs Lost
13.3
13.3
-0-
Current Situation
{basad on 1992 federal
harvest of 3.4 BBFI
3.4
0.7
4.1
11.7
15.8
0.04
(2.2)
13.7
16.7
6.9
10.0
1.3
3.7
0.8
(2.71
13.1
13.1
-0-
Federal Harvest
of 3.4 BBF
AND
Sustainable Privata
Harvest
3.4
0.7
4.1
6.9
11 .0
0.04
(2.2)
8.9
5.3
2.2
4.2
0.8
(2.71
14.2
Federal Harvest
Required
8.2 BBF
8.2
0.7
8.9
6.9
15.8
0.04
(2.2)
13.6
16.6
6.9
9.7
2.2
4.2
0.8
(2.71
14.2
14.2
-0-
307
Prepared b y Donald Sm' lth, V'l ce presl· dent, Tl·m b er 1 an d Resources, Bo·l se Cascade Corporatl. on. MR30322D , ~ " .....
Ill
Table 15--Washington and Oregon timber harvest by ownership, 1981-91
State and
year
Washington:
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
Oregon:
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
P = preliminary.
NA = not available.
Private
3,266
3,740
4,025
3,545
3,561
3,989
4,367
4,406
4,520
P3,993
P3,205
2,702
3,440
3,374
3,078
3,332
3,494
3,281
3,259
3,721
3,229
NA
(In million board feet, Scribner scale)
State
488
440
549
795
1,013
1,064
970
826
842
P657
NA
216
175
257
249
268
225
199
270
198
137
NA
National
Forest
875
728
1,240
1,189
1,128
1,232
1,423
1,486
1 '141
P817
NA
1,981
1,688
2,902
3,164
3,480
3,850
3,451
3,487
3,307
2,014
NA
Bureau
of Land
Management
8
2
5
4
5
0
P4
NA
677
312
789
920
891
1,042
1 '115
1,439
1,026
704
NA
Bureau
of Indian
Affairs
260
152
238
205
213
235
238
271
262
P182
NA
95
126
112
101
121
104
117
121
124
98
NA
Source: Washington Department of Natural Resources and Oregon Department of Forestry.
Other
public
20
18
28
66
43
32
35
56
22
P40
NA
24
17
31
38
34
28
52
39
44
37
NA
Total
4,890
5,079
6,088
5,802
5,963
6,556
7,037
7,045
6,788
P5,694
P4,784
5,695
5,758
7,464
7,550
8,127
8,743
8,215
8,615
8,420
6,219
P5,400
17
'' t
~
I
I
I
l
l
l
Federal Harvest Under Various Legislative Proposals and
Spotted Owl Management Plans
On USFS & BLM lands in Washington, Oregon, & California
In Billion Board
6
5 .
4
3
2
0.8 0.6
Washington~ 1.3 1.1 1
Oregon~ 3.8 3.1 2.6
TotaiEJI 6 5 4.2
PFE & Associates
0.8
2.1
DeFozioP!aa
Th=P..m
0.7 O.i
2 1.9
~ ,
Plm
0.2 0.1
0.5 0.4
13 1
2 1.5
Americ:1n Pulpwood A.ssoci:uion Inc. 1992
5-13 Septellbe., 1992
Table 23-Volume of softwood log exports from Seattle and Columbia-Snake Customs Districts by
species and destination, 1981-92
(In million board feet, Scribner scale)
From both cusioms dlllrlcts From See.ttle Customs District From Columbia-Snake Custom• District
Port-
Year and Oou~~as- Western Other Oou~~u- Western Other eoun,'u- Western Offord- Other
quarter Total hemlock softwoods Total hemlock oonwoodo Total hemlock cedar -· TO All COUNTRIES
1981 1,987.2 1,017.2 807.3 147.2 1,315.9 579.0 623.5 113.4 871.3 438.1 183.9 15.5 33.8
1982 2,!587.8 1,427.8 996.8 131.7 1,596.8 729.8 765.1 101.8 970.9 698.0 231.7 11.3 29.9
1983 2,591.!5 1,417.7 1,011.0 te3.9 1,739.8 796.3 824.2 119.2 851.7 621.4 186.7 8.9 34.7
1 ... 2,722.2 1,!568.8 995.8 146.!5 1,789.2 847.3 828.8 113.0 933.1 721.5 167.0 11.1 33.4
1988 3,004.1 1,749.7 1,112.0 130.1 1,878.9 844.3 939.2 9!5.o4 1,125.3 905.4 172.8 12.4 34.7
1988 2,780.1 1,610.7 1,033.0 124.2 1,738.6 765.7 879.0 94.0 1,041.5 845.0 154.1 12.2 30.2
1987 3,167.8 1,844.6 1,150.6 150.3 2,063.5 983.3 988.3 114.9 1,104.1 861.2 185.3 12.1 45.5
1888 3,682.2 2,279.1 1,163.8 220.0 2,294.8 1,216.8 921.9 1~.0 1,387.4 1,062.2 241.9 18.8 84.5
1980 3,614.1 2,034.1 1,350.7 217.1 2,3~.9 1,158.1 1,029.1! 169.0 1,257.2 876.0 321.1 12.1 48.0
1990 3,008.4 1,863.1 941.11 1D2.5 1,932.1 1,078.8 717.6 137.7 1,078.2 786.3 224.3 10.9 04.8
1991:
111 qtr. 702.9 «0.1 224.0 38.8 424.5 233.0 167.2 24.3 278.4 207.1 56.8 1.5 13.0
2dqtr. 857.3 397.3 220.0 39.5 380.1 193.1 1&4.0 23.0 277.2 204.2 56.5 2.8 13.7
3dqtr. 587.2 ~3.5 195.1 38.6 389.2 209.7 154.7 24.8 198.0 143.8 40.4 2.5 11~
4th qtr. OOM 383.8 178,4 32.8 354.5 198.3 136.7 19.5 240.5 185.5 41.7 1.9 11.4
1991 total 2,542.4 1,574.7 818.0 149.7 1,548.3 834.2 822.5 91.!! 994.1 740.6 195.3 8.7 49.4
1992:
181 qtr.
2d qtr.
068.7 348.7 186.4 33.8 379.4 200.7 155.9 22.8 189.3 148.0 30.5 2.4 8.4
3dqtr.
4th qtr.
1992 total
TO JAPAN
1981 1,603.9 846.5 629.0 113.0 1,003.4 452.7 467.5 83.2 600.6 393.8 161.5 15.5 29.8
1982 1,738.2 990.6 847.0 89.3 992.0 457.6 462.9 72.4 745.3 533.0 184.1 11.3 16.9
1983 1,591.3 895.7 a87.4 99.2 933.7 430.4 428.1 75.2 657.6 465.3 159.3 8.9 24.1
1984 1,519.4 912.0 521.8 74.7 889.1 427.2 400.6 81.3 830.2 484.8 121.2 10.8 13.4
1985 1,617.1 1,014.8 521.2 69.1 916.4 454.6 406.3 55.5 700.6 560.2 114.9 11.9 13.6
1988 1,768.7 1,216.2 465.0 75.4 945.0 524.2 362.7 58.1 823.7 692.0 102.3 12.1 17.2
1987 2,048.8 1,374.4 ~2.8 100.8 1,138.5 ....... 435.6 88.9 910.4 738.5 127.0 11.0 33.8
1988 2,021.3 1,398.0 472.0 134.2 1,109.4 669.0 353.3 87.1 912.0 729.0 118.7 17.1 47.2
1989 2,423.8 1,606.7 883.3 142.7 1,471.9 850.3 520.2 101.4 952.0 756.4 143.1 11.2 .. ~
1990 2,114.4 1,526.1 -451.2 127.2 1,271.1 846.1 349.3 75.7 843.3 sao.o 101.9 9.9 51.5
1991:
1st qtr. 496.9 375.3 94.1 27.5 276.2 188.9 73.1 14.2 220.7 186.4 21.0 1.2 12.1
2d qtr. 410.9 301.6 80.0 24.3 216.9 139.9 65.3 11.7 194.0 161.7 19.7 2.5 10.1
3d qtr. 403.7 290.4 89.8 23.5 202.7 166.7 74.3 11.7 151.0 123.7 15.5 1.9 9.9
4th qtr. 402.2 295.9 83.9 22.4 225.6 145.9 69.3 10.4 176.6 150.0 14.6 1.4 10.6
1991 total 1,713.7 1,263.2 352.8 97.7 971.4 641.4 282.0 48.0 742.2 621.8 70.8 8.9 42.7
1992:
1st qtr.
2d qtr.
3d qtr.
405.3 303.7 81.0 20.8 251.5 174.7 .... 10.3 153.8 129.0 14.5 2.3 8.0
4th qtr.
1992 total
TO CANADA
1981 1.3 .. 0 .9 1.3 .• 0 .9 0 0 0 0 0
1982 4.8 .6 1.8 2.3 4.8 .6 1.8 2.3 0 0 0 0 0
1983 5.2 .. 2.8 2.0 5.2 .4 2.8 2.0 0 0 0 0 0
1984 10.5 2.4 4.5 3.6 10.5 2.4 4.5 3.6 0 0 0 0 0
1985 32.8 0 30.5 2~ 32.8 .4 30.5 2.3 0 0 0 0 0
1986 58.8 2.3 45.6 10.9 53.6 2.3 45.6 5.7 5.2 0 4.5 0 .7
1987 43.5 5.4 35.6 2.5 41.4 5.4 35.6 .4 2.1 0 2.1 0 0
1988 20.9 .8 19.4 .7 20.9 .8 19.4 .7 0 0 0 0 0
1989 30.3 12.9 16.7 .7 30.3 12.9 16.7 .7 0 0 0 0 0
1990 28.3 3.4 19.6 5.3 28.3 3.4 19.6 5.3 0 0 0 0 0
1991:
1st qtr. 15.5 1.7 13.6 .2 15.5 1.7 13.6 .2 0 0 0 0 0
2d qtr. 10.4 .8 8.3 1.3 10.4 .9 8.3 1.3 0 0 0 0 0
3d qtr. 2.2 1.0 .2 1.0 2.2 1.0 .2 1.0 0 0 0 0 0
4th qtr. 1.1 .1 0 1.0 1.1 .1 0 1.0 0 0 0 0 0
1991 total 29.2 3.8 22.1 3.5 29.2 3.8 22.1 3.5 0 0 0 0 0
1992:
1st qtr.
2d qlr.
3.8 1.0 2.1 .5 3.8 1.0 2.1 .5 0 0 0 0 0
3d qlr.
4th qtr.
1992totar
25
,II~
Federal Set-Asides
1• n
~ Washington State
IJ 930 IJ
1
Source: AFRA
Billion 4
Board
Feet 3
2
1
0
86
Export Restrictions Not Solution
to Timber Reductions
87 88 89 90 91 92
0 Public Timber Sold in Oregon
• Log Exports from Oregon
Soun:es: Warn!ll, Debr.l D., Produotton, Prle<IS,
EmploymontandTrode/nNorll!westForest
lndustrios;and Jones Stevedoring SeMc:es
70
60
Employment
(thousands) 50
40
Employment in Forest Products Industry
Washington
30 V I V I V I P' _..
I I I
1988 1992
1 s
1995
Recovery Plan
Sources: Production, Prices, Employment and Trade
in Northwest Forest Industries, Debra D. Warren and
Department of Interior
®Boise Cascade
AND NOW, FQR THE REST OF THE STORY •••
11Americans for the Ancient Forests, " a national environmental group, is misleading
you about President ·Clinton and the ancient forest debate. In thezr big, national
ad campaign, they falsely suggest President Clinton opposes exports of logs
grown by private tree farmers. Here'sthetruth:
They didn't leU you that Eugene 1V station
KEZI aired this quote from Clinton on ·
September 14, 1992: "What I said was, I did not
bclie.·e that the federal government should ban
the export of raw logs from private land, but I
do not think that we should continue to give it
the tax subsid}•we now give it." And Clinton
told the Portland Oregonian that day: " ... he
was not calling for an end to the export oflogs
from private lands. 'It's their trees,' he said.
'They ought to be able' to sell them overseas.'"
They also didn 'I te~ you private property
rights a·re a basic constitutional right. And
Americans overwhelmingly agree with the
President - private timber owners have a
buslnc..<.• and property right to sell to the buyer
of their choice, just the way homeowners do.
They also didn't trU you one in 11ve
Nonhwesljobs depends on trade. Every
· major agriculture group in the Northwest
supports Presidenr Clinton and opposes
restrictions on private log exports, because
embargoes are always had fur American
farmers and other exporters.
They also dldo'tteU you trampling property
rights won't address the real problem:
restricted federal timber sales. In Oregon
alone, some 4 billion board feet of annual
federal timber sales is tied up in lawsuits and
restrictions. But Oregon tree farmers already
sell90% of their logs local\}'· Banning their
exports, just 2S4 million board feet, would
only replace no more than 6'16 of the gap in
federal timber sales.
They. also didn't tell you that banning
pri,•ate log exports would eliminate jobs and
devastate many rural port communities. And
. private log exports have opened markets for
exports of more finished wood products.
They also dJdn't ten you that unions,
· sawmiUs, tree fanners and others believe
there's a beuer answer. We can design
scientifically-sound, sustainable use of our
national forests for }VOOd produ'cts and jobs,
and additional protection for forest
ecosystems for future generations. We don't
need to penalize private tree farmers to save
jobs, or lock up national forests to save the
environment.
~t?-:C
President Clinton knows what he said. 3 . ZCf· c;13
Now you know the rest of the story. . .
Write the White House and your Member of Congress today, and say you support the President on property
rights and private log exports, and want a balanced solution for our national forests, because you, too, favor
protection of our forest heritage for our children.
. . .
A message from Northwest agricultural producers, trw farmers, longshoremen. marillm~ Industries, and forest products companies.
,
•··
Padtic Rim Trade Association Washington Citizens for World Trade
Authorized and Paid for hr Washington Citizen!~ for \t'otld TOOe
f .0. Box 28}, Ol}'mpia., \l1~iog1on 9BOS 7
. i
PLUMCREEKILRW&CDRP. RF TEL:206-467-3799
pr:: Plum Creek Timber Compenv, LP.
March 29, 1993
Governor Cecil D. Andrus
Office of the Governor
State Capitol
Boise, Idaho 83720
Dear Governor Andrus:
Mar 29 93 11:12 No.012 P.02
On behalf of the people at Plum Creek Timber Company, L. P., and at Murray-Pacific,
we want to thank you for having taken considerable time from your busy schedule
to meet with us on March 18th to discuss the upcoming "Forest Conference."
Because of your unique position and the high regard in which you are held by all
the contending interests, we felt that you might be best positioned to help craft a
truly implementable middle path along which all the parties could come together
and move forward. Towards that goal, our discussions with you led to a set of
"principles" or "concepts" which we agreed to put in writing and submit to you in
the hope that you could deliver these principles either at the Conference itself or in
a series of meetings with the key players whom you know well and who will be
charged by the President and Vice President with implementing the results of the
Forest Conference's discussions.
It was clear to us that while agreeing that these might be sound principles, you
reserved the right to accept or reject any or all of them before undertaking any effort
which, in your view, first and foremost had to also serve the best interests of the one
million Idahoans you were elected to represent. The principles we discussed were as
follows:
1) No subsidies of any kind. If we are to move forward from the summit on
both a sound environmental as well as sound economic basis, the parties
have to recognize that subsidies in any form only serve to discourage
progress. Practically, what this means is that industry may have to forego
tax incentives created through foreign sales corporations, which create the
impression that taxpayers are subsidizing log exports. Conversely, this
means that the right of private companies to export logs from public lands
has to be respected, for any outright ban on private exports would
constitute a subsidy to mills now currently supplied primarily through
public timber sales.
999 Third Avenue Suite 2300 Seattle, Washington 98104·4096 206/467-3600
PLUMCREEKILAW&CORP. AF TEL:206-467-3799 Mar 29 93 11:12 No.012 P.03
Governor Andrus/PC/M·P
March 29, 1993
Page Two
2) Compensation, full and prompt, will be provided for any taking. This
principle relates to access as well as any effort by State or federal agencies
that would effectively deny a private property owner the full and highest
use of his own property. For example, In a checkerboard ownership
pattern in which a private section is surrounded by roadless public
sections, if the Forest Service or an environmental group seeks to stop a
temporary road from being put into place to provide reasonable access to
one's private property, then either the company must be compensated for
its property at full and fair market value, or, if the U. S. Forest Service
restrictions reduce the property owner's economic benefits from his
property by mandating a specific, more costly harvest prescription, then
the government would compensate the land-owner for his loss.
Furthermore, if for a variety of political reasons, Congress limits private
log exports or the President chooses to issue an Executive Order banning
raw log exports from private lands, then this principle also means that
companies exporting logs will be paid the difference in price those logs
would command on the export market and the actual price they receive
when redirected to domestic mills. Again, this is so that a private property
owner will not be denied the highest and best use for his property by a
restrictive public policy determined to be in the greater public interest.
3) Ecosystem management, if adopted, must be defined up front so that it
cannot become an excuse for "paralysis by analysis." Industry's greatest
fear is that the move to an ·•ecosystem management"' regime will lead to
more uncertainties than it clarifies. There is considerable concern that
ecosystem management could be defined through regulations such that it
becomes another pretext to justify doing nothing on the public lands for
the foreseeable future while conducting extensive, expensive biological
surveys in order to develop management plans that address any and all
"cumulative effects."
In addition, just as we have discovered with the promulgation of "habitat
conservation areas" for spotted owls by federal agencies that include, not
exclude, private lands, so we believe ecosystem management could be
used to stop activities, no matter how environmentally sensitive the
PLUMCREEKILAW&CORP. AF TEL:206-467-3799 Mar 29 93 11:13 No.012 P.04
,
•
Governor Andrus/PC/M-P
March 29, 1993
Page Three
harvest may be, on private lands. Therefore, in addition to being well
defined, the application of ecosystem management has to take into
consideration the Inherent difference between public and private lands
and incorporate some time-frames with hard and firm deadlines. This
leads to the fourth principle we discussed.
4) There has to be certainty and sufficiency. For the impasse between
industry and environmentalists to truly be broken, there have to be
ironclad agreements that bind all parties. Heretofore, as you know,
national environmental groups have been unwilling to, or ineffective in
trying to enforce compliance by the myriad of smaller regional and local
groups with existing "agreements." If Industry is to support additional
wilderness set-asides of remaining old growth on public lands, then the
environmentalists have to support the resumption of some ongoing and
certain level of harvest on the public lands and agree to quit making it
difficult for private companies to harvest trees from their own lands.
Industry, In turn, should agree to practice forestry that follows science that
respects the multiple values Inherent In an ecosystem.
5) Define the base and define the terms. To put this another way, 10% of
what? The Sierra Club claims that only 10% of the region's old growth
forest remains. Do they mean 10% of the total that was here 300 years ago?
Does this include unharvested old growth on private lands, or only what ·
is found on public lands? Several years ago, former Governor Dan Evans
lamented the fact that there was no reliable Inventory of what was out
there on the land. For a dialogue to move forward on these complex
subjects, there has to be consensus on just what the timber base is, both
public and private, and just what it contains by species and type, where it
is, and how accessible it may be.
Also, you know better than any other major public figure the pitfalls of
having the major parties leave this conference to hash out the follow-up
legislation thinking that the key terms mean something slightly different
than what the other key parties think. Therefore, you would do us all a
great service If you could underscore the importance of defining key terms
such as "old growth" and "exhibiting old growth characteristics."
These then, were the five major concepts or principles we discussed your injecting
into this Forest Conference process to help ensure a reasonable and perhaps
acceptable outcome to all the major interests.
PLUMCREEKILAW&CORP. AF TEL:206-467-3799 Mar 29 93 11:13 No.012 P.OS
,
Governor Andrus/PC/M-P
March 29, 1993
Page Four
For the record, we also discussed your strong feeling that the Washington and
Oregon wilderness question might have to be re-opened and that in exchange for
some of these concepts industry would have to buy into more set-asides of
remaining old growth forests Into formal wilderness or park status.
And, we discussed your assistance in helping Plum Creek break the access impasse
that is beginning to plague efforts to reach some of its lands in northern Idaho. We
will get back to you shortly with more back-up documentation. Furthermore, we
discussed your feelings about the bull trout petition and our concerns about the
likelihood of its being listed.
We covered many subjects, Governor, and we deeply appreciate your hearing about
our concerns. We also appreciate your willingness to consider being the architect of
a truly implementable middle path that will be accepted by the various competing
interests and with the public as fair to all parties while being environmentally and
economically sound. We thank you for whatever consideration you can give and
for whatever assistance you can provide.
Sincerely,
Cf~~ ,::t;L TobyMu~
President
Murray-
Charlie Grenier
Vice President
Rocky Region
Plum Creek
CG:SK:TM:heb
Pacific
PLUMCREEKILAW&CGRP. AF TEL:206-467-3799 Mar 29 93 11:11 No.012 P.01
.. PC Plumcreelc Timber Comp•nr, L.P •
SHARON KANAREFF
Director Corporate Affaire
nt Third AwtnYe, BuiCe 2300
e .. ule, w .. hlnglon 0810.
TRANSMISSION COVER SHEET
Page I qf_ 5
Date 3/7.5'1 Jo, 3
I
TO: boVf%/'JOfZ C{?CdL D. ANDRUS
FAX.~·-----------------------------
PH: _______________ _
J'ROM: Sharon Kanareff
FAX: (206) 467-3799
PH: (206) 467 ·3667
If you do not receive all pages. please call 'lat<-1
Comments:
(2DlP)
at 4frD-3'olf
JON CARTER
CECIL D. ANDRUS, GOVERNOR
OFFICE OF THE GOVERNOR
STATE CAPITOL
BOISE IDAHO 83720
March 11, 1993
TO: Governor Andrus
Marc
Scott
Andy
FROM: Jon Carter
This is a copy of the memo sent to
Kathleen McGinty about the Forest
Summit.
..• ' ,
CECIL. D. ANDRUS
GOVERNOR
( (
OFFICE OF THE GOVERNOR
STATE CAPITOL
BOISE 83720-1000
February 10, 1993
{208) 334-2 I 00
MEMORANDUM
TO:
FROM:
RE:
Kathleen McGinty FAX: (202) 456-6231
Jon Cart~
Western ~nors' -Association (WGA) Initiatives,
National Governors' Association (NGA) Initiatives and
Forest Surrnnit
I am sure you are being inundated with information and requests
on environmental issues, so I will be very brief.
1. WGA Initiative (DOIT Committee)--! talked with Jim Souby and
he indicated that he has sent you a letter with additional
information describing the project and asking for the White
House's support.
2. NGA Initiative (Federal Facility Compliance)--You will be
hearing shortly from Tom Curtis, staff to the National
Governors' Association's Natural Resources Committee, about
the governors' interest in working with the administration
on environmental initiatives. My boss is lead governor on
federal facilities for the NGA and is initiating a project
to ensure appropriate implementation of the Federal Facility
Compliance Act which passed last year. In this regard, I am
enclosing copies of a letter from the NGA to the Department
of Energy and a resolution on this subject which was adopted
at the recent NGA meeting.
3. Forest Surrnnit--As one who has worked in the timber industry
as a logger and sawmill operator in North Idaho and who has
served as Secretary of Interior and Governor of the state of
Idaho, Governor Andrus has a fully informed perspective on
timber issues in the Northwest. He understands not only
timber supply issues, but associated issues such as
endangered species. (In this regard, I am attaching a copy
of a WGA resolution co-sponsored by Governors Andrus and
Stephens on the Endangered Species Act which was adopted
late last year.) Governor Andrus is in a unique position to
assist in the Forest Summit and help bring resolution to the
(
Kathleen McGinty
February 10, 1993
Page Two
(
issue. Although some would say this is only a "west of the
Cascades" issue, we believe that major decisions affecting
timber supply west of the Cascades will have a ripple effect
and impact on timber issues in the entire Northwest and
northern California.
I would like to discuss these issues more fully with you when you
have an opportunity. Essentially, I am inviting you to work with
us on these and any other issues on which you believe our office
can provide assistance to the Clinton administration. We look
forward to working with you.
Good luck with the Office of Environmental Policy!
JC:db
attachments
OFFICE OF THE GOVERNOR
STAlE CAPITOL
BOISE 83720
CECIL D. ANDRUS
GOVERNOR April 5, 1993
FOR YOUR PERSONAL INFORMATION
BUT NOT FOR DISTRIBUTION
Mr. John B. Fery
Chairman of the Board and Chief Executive Officer
Boise Cascade Corporation
One Jefferson Square
Boise, Idaho 83702
Dear John:
I thought that President Clinton's Summit was a smashing
success. In my line of work, I attend many of these meetings,
and I always ask myself afterward, "Was it worthwhile?" This one
definitely was.
During our private meeting, I made recommendations to the
President, dealing with most of the items we discussed last week
in my office. My comments to him included:
-foreign sales corporation tax incentives;
-even-aged silvaculture methodology;
-right of access where checkboard ownership exists;
-ban on all exports of logs and chips;,
-establishment of a compensable amount between domestic
market and export market;
-the decrease in USFS sales volume over the last two years
even though our total consumption, because of
dramatically increased harvests from private lands, has
remained about the same;
-the need for certainty of federal supply and continuity of
sales;
-and the need to lift the current countervailing duty
agreement with Canada.
As was reported in the press, he put the cabinet members on
a 60-day time frame for recommendations back to him. He will
then take those recommendations and finalize a position. I think
this process can be completed in the next ninety days, and I
(continued)
i
I
i
'
'
(
!
Mr. John Fery
April 5, 1993
Page 2
urged him to continue to focus on resolving these problems.
I also volunteered to look privately and confidentially at the
draft of his proposal to make certain he and his people weren't
stepping on any land mines. Whether they will take me up on my
offer, I don't know.
I also had a discussion with him about the Endangered
Species Act. The issue is not a "spotted owl" issue, as the
species is not really endangered, but an "old-growth" issue. We
discussed as well the difference between salmon habitat problems
west of the Cascades and the problems with the Snake River
salmon. I also got my oar pretty deeply into the waters of the
Secretaries of Interior, Commerce, and Agriculture, and also into
those of the Administrator of the Environmental Protection
Agency. I hope positive results will come from all of this.
With best regards,
Sincerely,
Governor
cc: Mr. Kirk Sullivan
Vice President, Governmental Affairs
CDA:cw
,,
,,
·'
OFFICE OF THE GOVERNOR
BOISE 83720
CECIL 0. ANDRUS
April 5, 1993
FOR YOUR PERSONAL INFORMATION
BUT NOT FOR DISTRIBUTION
Dr. Charles P. Grenier
Vice President
Rocky Mountain Region
Plum Creek Timber Company
P 0 Box 160
Columbia Falls, Montana 59912
Dear Charlie:
12081 334-2100
As Lorin has already reported to you, I thought that
President Clinton's Summit was a smashing success. In my line of
work, I attend many of these meetings, and I always ask myself
afterward, "Was it worthwhile?" This one definitely was.
During our private meeting, I made recommendations to the
President, dealing with most of the items we discussed in Spokane
two weeks ago in Chris's office. My comments to him included:
-foreign sales corporation tax incentives;
-even-aged silvaculture methodology;
-right of access where checkboard ownership exists;
-ban on all exports of logs and chips;
-establishment of a compensable amount between domestic
market and export market;
-the decrease in USFS sales volume over the last two years
even though our total consumption, because of
dramatically increased harvests from private lands, has
remained about the same;
-the need for certainty of federal supply and continuity of
sales;
-and the need to lift the current countervailing duty
agreement with Canada.
As was reported in the press, he put the cabinet members on
a 60-day time frame for recommendations back to him. He will
then take those recommendations and finalize a position. I think
this process can be completed in the next ninety days, and I
(continued)
' j
Mr. Charles P. Grenier
April 5, 1993
Page 2
urged him to continue to focus on resolving these problems.
I also volunteered to look privately and confidentially at the
draft of his proposal to make certain he.and his people weren't
stepping on any land mines. Whether they will take me up on my
offer, I don't know.
I also had a discussion with him about the Endangered
Species Act. The issue is not a "spotted owl" issue, as the
species is not really endangered, but an "old-growth" issue. We
discussed as well the difference between salmon habitat problems
west of the Cascades and the problems with the Snake River
salmon. I also got my oar pretty deeply into the waters of the
Secretaries of Interior, Commerce, and Agriculture, and also into
those of the Administrator of the Environmental Protection
Agency. I hope positive results will come from all of this.
With best regards,
cc: L. T. Murray III
Murray Pacific Corporation
3502 Lincoln Avenue E.
Tacoma, Washington 98421
Sharon Kanareff
Sincerely,
J) cu: r;_')). fLA4< < C~l D. Andrus
Governor
Plum Creek Timber Company
999 Third Avenue, Suite 2300
Seattle, washington 98104
D. Chris Carlson
The Gallatin Group
W. 601 Riverside, #1410
Spokane, Washington 99201
CDA:cw
.....

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Full Text

Not Just West of Cascades
1st. Not ESA Question-Old Growth
Snail Darter-Tellico Dam
Furbish Louwnswart-Dickey Lincoln
Spotted Owls are not endangered
Salmon/owls are two diff. issues
Species-Environ.-Important
Industry-42,000 jobs at stake. |5%5%|
Is there a politically acceptable solution?
Yes! Not perfect but acceptable to 90%
1992 Harvest was up to 13.7 Billion
1992 Sales .4 Billion
1911 Sales 1.2 Billion
Production decrease 1998-1993
33% of plywood
22% of lumber
If continued at Fed=3.4 billion
42,000 jobs Lumber, plywood, paper
SOLUTION:
President states-not owls, not ESA But, Old growth
Recognize importance of industry
Recognize importance of Environment
Can have both.
Industry will demand 8-9 billion from federal lands--6 will do.
President:
Cut tax incentive of forein sales corp. -$20 million/yr No more even age silverculter Public perception (clear cuts)
Right of access (Checkerboard ownership)
Ban all exports -logs and chips
2.2 bill. logs
2.7 million units of chips
Recognize private property rights as you did in Eugene
But--we now use condemnation for the public good-- highways, etc.
But you wouldn't condemn You would ban exports
And sell the fiber domestically
Difference in price in compensable Tobacco, cotton, rice.
Def of Terms: "Old Growth"--"Exhibiting O.G. Characteristics"
Industry--8.2-9 off feds
Save some old growth 8-9 million acres. 6 billion BD FT. tied up.
Pick a number-- 1-2 million acres into wilderness
The balance put into the base with certainty
Industry continues, owls survive--90% of people happy
Canada Plus countervailing duty elim.
Gives them access helps our supply
decreases price
Doesn't cost anything
Solving the Northwest
Timber-Supply Crisis
by Donald Smith
In attempting to end the timber-supply crisis that has been precipitated
by efforts to protect the northern spotted owl, it is essential to
understand that the forest products industry in the Northwest depends on
wood fiber from public and private forests - not only from the "owl
forests• in western Washington, western Oregon and northern California -
but from forests in eastern washington eastern Oregon and parts of Idaho
and Montana as well. This Northwest •wood basket• supplies logs to
regional producers of products, who in turn supply wood residues, such
as chips, to regional producers of pulp and paper (see attached table).
For the forest products industry in the Northwest to approximate even
today's depressed levels of production and employment (first column) on
a sustainable basis (far right column), federal forests in these five
states must be the source of 8.2 billion board feet of timber annually.
If federal forests in the Northwest wood basket fail to be the source of
8.2 billion board feet of timber on an ongoing basis, and the harvest on
private forests returns to a sustainable level and from its present
price-induced high (first column), then production of wood products and
pulp and paper will have to be curtailed to balance the region's
manufacturing capacity with its diminished supply of wood fiber.
Production declines of up to 49 percent for lumber, 23 percent for
plywood, and 31 percent for pulp and paper can be expected.
The only alternative to shutting down the production of wood products
and pulp and paper to compensate for the shortfall in federal timber
would be to accelerate harvest of the region's private forests.
Either action is undesirable. In the first instance, up to 42,000
people now working in wood products plants and pulp and paper mills
would lose their jobs, entire communities would be devastated, and high
prices for lumber and plywood would slow the construction of affordable
housing and restrain the nation's economic recovery.
In the second instance, it would be simply a matter of time before
private forest harvests could not be sustained and production of wood
products and pulp and paper plummets to compensate for the shortfall of
not only federal timber but private timber as well. The economic and
environmental impact would be catastrophic.
The only desirable action - economically and environmentally - is for
the wood supply from public and private forests in Oregon, Washington,
northern California, Idaho, and western Montana to include 8.2 billion
board feet of federal timber each year.
..
PNW Timber Supply Analysis
NORTHWEST WOOD BASKET
OREGON, WASHINGTON, IDAHO, WESTERN MONTANA, NORTHERN CALIFORNIA
(Chip Supply Area)
/7t.
ISoweea for logs (BBF log_..- net merch.IIOitwood)
CURRENT
SITUATION
( baSed on 1992
federal cut of 3.4 Bl
All Federal a. z... 3.4
S1ale and Other Public 0.7
Total Public 4.1
Private (Including nonlndul1rlal) ~- ~ 11.7
TOTAL Domestic Harvest 15.8
Log lmpons 0.04
Log Exports ~. 1 (2.2)
Total Logs Consumed In Pllclflc Nort11•est /'f:j 13.7
~Lumber Production (BBF) 1 1. 1 16.7
Plywood Production (BSF) 1. 7 8.8
ISowces for chips (MBDU'S)
Residual Softwood Chips (from Lumber & Plywood) 1 0.0
Sawdust & Hardwood Chips (from Lumber & Plywood) 1.3
Whole Log Chips and Other Wood Fiber 3.7
Federal Cu1
ol3.4 BBF
AND
Sustainable Pvt.
3.4
0.7
4.1
8.8 •
11.0
0.04
(2.2)
8.8
8.5
5.3
5.3
2.2
4.2
kC hip Imports 0.8 Chip Exports Q. e ~ 12.n ~ ,.
olaf Wood Fiber A,.._,.e tor PNW Pulpn>llper 13.1 - .
0.8
'"'7l ~
.. .a
-
Fiber Consumed bY PNW 13.1 -14.-2
0.0
Federal Cut
Required
tor jobs
8.2 BBF
3126193
DFS
8.2 &:·
0.7
8.9
6.9 •
15.8
0.04
(2.2)
13.6
16.6
6.9
9.7
2.2
4.2
0.8
!2.7l *" 14.2
14.2
IShortfall of Wood Fiber tor PNW Pulp/Paper ®SH 0.0 11itT~ALt_
Direct jobs lost at 8750 per billion board feel log scale 41,871 ......_.
• The orivat• form harv .. t
IN'1"~
1" '\, p. ...u>
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3/28/93 TMBERI.AND REsaJACES
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